Anger has boiled over and screams have reached fever pitch in the British media and amongst a number of politicians following revelations that an alleged Chinese spy had formed an "unusual degree of trust" with the Duke of York, Prince Andrew.
The naming of the 'spy' had been blocked, despite his name being in the public domain and easily searched in news articles going back many years. Indeed, the man in question was the subject of some controversy as recently as 2020 when the Daily Mail reported that he had gained access to influential establishment figures, including George Osborne and Prince Andrew.
The article claimed the former Chinese government official had founded the Hampton Group, one of a number of Chinese businesses that facilitated "subtly infiltrating areas of influence," according to the then chair of the defence committee in Britain, Tobias Ellwood. "We have to be very worried about how the regime is manipulating Britain's important areas of interest using these kind of tactics.[sic]"
Yang's background
Yang Tengbo [杨腾波] was born in China in 1974. Having graduated with a bachelor's degree in history from the School of History and Archives at Yunnan University in 1995 he went on to join the civil service [Wikipedia]. While Chinese civil servants are not necessarily members of the Chinese Communist Party [CCP], some 95% of civil servants in leading positions from division (county) level and above are CCP members, thus it is likely Yang had by this time secured membership.
He first came to the UK in 2002 and studied in London for a year, before taking a masters degree in public administration and public policy at the University of York.
In 2005 he founded consultancy firm Hampton Group International - one of five companies he has been publicly listed as a director of in the UK. By this time Yang had become an honorary member of the 48 Group Club, a pro-China lobbying group, and a member of the Chinese Communist Party [BBC / Wikipedia].
In the 2020 book "Hidden Hands" published by Australian researchers, the 48 Group Club was accused of acting as a conduit for the Chinese government to "cultivate" senior British businessmen and politicians, and explored China's covert influence around the world. Meanwhile Yang has reportedly had his membership revoked in light of the allegations against him [Botanwang - Chinese].
Yang's rise to importance continued following the founding of his consultancy firm. In April 2009, Yang Tengbo was cordially received by President Hu Jintao in London and the following year he was awarded the title of "Top Ten Leaders of the 11th China Era Who Influence China" in Beijing. He later initiated the establishment of the China-UK Entrepreneurs Association which facilitated the landing of "Pitch@Palace", a venture capital platform initiated by Prince Andrew, Duke of York, to China to support young entrepreneurs. It was perhaps this enterprise that established his close links with Prince Andrew and which later raised eyebrows with the British security service [zgcforum - Chinese / Guardian].
Gaining advantage
China's foreign policy should come as no surprise to anyone who understands the country. Ever since China 'opened up' in the 1980s, it has sought to gain advantage wherever it can.
For example China might conveniently ignore some WTO and other international trade rules while taking advantage of others. Many people might for example be unaware that China is able to take advantage of cheap postal rates when shipping items all over the world. These lower postal rates are set by the Universal Postal Union (UPU) treaty for so-called 'developing countries'.
In practice a consumer in the US or Europe can order an item from China including shipping for less than what a local seller or distributor might be able to offer the same product. While China is still developing in many ways, the fact that it is the second largest economy seems to be somewhat incongruous with its being judged to have access to more favourable shipping rates.
China has feathered its nest in other ways too. By 'investing' in Africa and other places, building roads and other infrastructure, China has secured cheap copper, oil and other important natural resources.
China has long 'welcomed' businesses to invest and create manufacturing bases in China. However, this has come with a hidden cost as many firms find their intellectual property copied or blatantly stolen.
The world has been coaxed by China's cheap manufacturing base to knock out everything from clothes to hi-tech items. But the factories where these items are produced often have a secret output of items which end up on the 'black-market'.
Stolen IP
Those shanzhai or counterfeit items one might buy at 10% of the cost of the real item at a Beijing store, may in fact be the real item. In other cases, the items are an exact copy since the blueprint is simply passed around between enterprises. Most shanzhai products tend to be aimed at the domestic or tourist market and as such may little dent the profits of some firms. Most Chinese people will be unable to afford a real North Face jacket, Chanel bag or Burberry scarf but will be happy to wear the fake. The tourists are happy too, as they go home with a fake 'Rimowa' suitcase, that normally costs in the region of $1,000, having paid less than $50.
Authorities turn a blind eye to such things for several reasons. The first is 'Bread and Circuses'. Keep the people happy. If people are happy in their lives with their designer clothes, watches, suitcases and phones, they are less likely to create problems. Keep the tourists happy. While the draw to China is more than the lure of cheap designer products at Beijing's infamous Silk Market, there won't be many tourists leaving Beijing without at least a couple of 'knock-off' items.
China, has of course used IP theft to bolster its international position too. It is clear that while many people in the West might buy a branded product, there is a shift towards Chinese brands or cheaper Chinese made products that are essentially copies of well known brands.
Data theft and retention
It will be of no surprise that people's data is worth much to companies. Be it your browsing history on your favourite shopping website to purchasing habits at your local supermarket, collected via a loyalty card, such data is a goldmine.
So it is of growing concern that hacking and cyberattacks are becoming more frequent. And many such attacks are emanating from China. In recent weeks AT&T and other telecoms giants in the US have been targeted prompting the FBI to advise consumers not to send text messages [NPR].
Traditional espionage
Information is everything and can give advantage in business deals and securing contracts. Thus, traditional spying also maintains a place in a world of hi-tech espionage.
It is in this world that the likes of Yang Tengbo play a role. His name was revealed following a High Court ruling on the 16th December. His ban from entering the UK is due to his being deemed a national security risk. He is accused of being engaged in "covert and deceptive activity" on behalf of the Chinese state [Politico].
In part this may be true, in as much as any information, private or otherwise, he gleaned from his contacts would have likely been shared with the Chinese state.
Yang is reported to have been stopped and questioned by police in November 2021 at the UK border under powers to investigate suspicions of "hostile activity" by a foreign state. This followed shortly after a meeting in London with the Chinese Ambassador to the UK Zheng Zeguang, in his role as Executive Chairman of the Chinese Chamber of Commerce in the UK [UKCBA - Chinese].
During that stop he surrendered a number of electronic devices including a mobile phone. From what was found on the devices it prompted a decision by the then Home Secretary Suella Braverman to use exceptional powers to ban him from the UK.
Information obtained from the devices, including a letter addressed to Yang from Prince Andrew's adviser Dominic Hampshire, appeared to suggest that Yang had placed himself in a position "to generate relationships between senior Chinese officials and prominent UK figures which could be leveraged for political interference purposes by the Chinese State" [BBC].
This is all likely to be true. Though there is an element of naivety on the part of the press and amongst politicians that Yang is an exception. However there are some lone voices calling out the Chinese. Iain Duncan Smith, a former Conservative party leader and strong critic of the Chinese government, has said the allegations surrounding Yang were "the tip of the iceberg" of Chinese influence in the UK [Guardian].
Chris Yang, has described the claims as "ill-founded" while China has repeated it oft repeated line of not meddling in China's internal affairs.
"The UK side must have a right perception of China, see the historical trend clearly, and handle its relations with China on the basis of mutual respect, non-interference in each other's internal affairs, equality and mutual benefit," a spokesperson from the Chinese Embassy in London said in a statement.
Difficult playing fields
At the heart of it all, China is not only seeking strength in terms of its economic position on the world stage, it is also establishing a position of self-sufficiency should it decide, in the future, to close its doors and end its open door policy. Should that happen, despite all the criticisms of China, the world beyond its borders would find itself in a world of hurt. The global economy would find itself without the necessary rare earths needed for technology, much of the world's manufactured goods and even food, given China supplies a quarter of the world's grain and feeds one-fifth of the world's population. Moreover, China ranks first globally in producing cereals - such as corn, wheat, and rice - fruit, vegetables, meat, poultry, eggs, and fishery products [CFR].
It's all very well to criticise China. Many criticisms are of course well founded. But the West has made decisions over the last few decades that has resulted in the erosion of domestic manufacturing and agriculture in favour of a quick economically viable solution by farming industry out to China. Some resources, such as rare earths, do exist outside of China. But the mining operations have, in many cases, been mothballed, partly due to environmental and other considerations. Thus, should China shut its doors, it would take decades for the world to recover its industry, agriculture and restart mining of natural resources.
The West must plan for such eventualities. China plans for years, decades and even centuries ahead. Most western democracies focus only on the short term, planning only from one election cycle to another. Such short-termism will be their undoing if they don't wake up and smell the coffee. At least one doesn't have to rely on China for the morning brew with the likes of Brazil, Vietnam, Indonesia and Columbia providing the bulk of the world's coffee beans [Wikipedia]. However, an increasing amount is now being shipped to China as their appetite for coffee grows. Exports of Brazilian coffee to China surged 186.1% in 2024 compared to 2022-2023. So even that's not a safe bet [Xinhua].
tvnewswatch, London, UK
Accusations
The man made headlines in early December after being banned from entering the UK and it was subsequently revealed had a close relationship with the disgraced prince.
Initially identified only as H6, the Chinese businessman is also accused of having developed relationships with politicians to be "leveraged" by China.
The Chinese embassy in London has accused some UK parliamentarians of having a "twisted mentality towards China" and that such "anti-China clamours" were an attempt to "smear China, target against the Chinese community in the UK and undermine normal personnel exchanges between China and the UK" [sic]. [Daily Mail / Guardian]
Iain Duncan Smith, who has often criticised China for its human rights abuses, intellectual property theft and espionage, has said he could not understand why people around Prince Andrew were not being checked by the security services.
Growing concerns
The man made headlines in early December after being banned from entering the UK and it was subsequently revealed had a close relationship with the disgraced prince.
Initially identified only as H6, the Chinese businessman is also accused of having developed relationships with politicians to be "leveraged" by China.
The Chinese embassy in London has accused some UK parliamentarians of having a "twisted mentality towards China" and that such "anti-China clamours" were an attempt to "smear China, target against the Chinese community in the UK and undermine normal personnel exchanges between China and the UK" [sic]. [Daily Mail / Guardian]
Iain Duncan Smith, who has often criticised China for its human rights abuses, intellectual property theft and espionage, has said he could not understand why people around Prince Andrew were not being checked by the security services.
Growing concerns
The naming of the 'spy' had been blocked, despite his name being in the public domain and easily searched in news articles going back many years. Indeed, the man in question was the subject of some controversy as recently as 2020 when the Daily Mail reported that he had gained access to influential establishment figures, including George Osborne and Prince Andrew.
The article claimed the former Chinese government official had founded the Hampton Group, one of a number of Chinese businesses that facilitated "subtly infiltrating areas of influence," according to the then chair of the defence committee in Britain, Tobias Ellwood. "We have to be very worried about how the regime is manipulating Britain's important areas of interest using these kind of tactics.[sic]"
Yang's background
Yang Tengbo [杨腾波] was born in China in 1974. Having graduated with a bachelor's degree in history from the School of History and Archives at Yunnan University in 1995 he went on to join the civil service [Wikipedia]. While Chinese civil servants are not necessarily members of the Chinese Communist Party [CCP], some 95% of civil servants in leading positions from division (county) level and above are CCP members, thus it is likely Yang had by this time secured membership.
He first came to the UK in 2002 and studied in London for a year, before taking a masters degree in public administration and public policy at the University of York.
In 2005 he founded consultancy firm Hampton Group International - one of five companies he has been publicly listed as a director of in the UK. By this time Yang had become an honorary member of the 48 Group Club, a pro-China lobbying group, and a member of the Chinese Communist Party [BBC / Wikipedia].
In the 2020 book "Hidden Hands" published by Australian researchers, the 48 Group Club was accused of acting as a conduit for the Chinese government to "cultivate" senior British businessmen and politicians, and explored China's covert influence around the world. Meanwhile Yang has reportedly had his membership revoked in light of the allegations against him [Botanwang - Chinese].
Yang's rise to importance continued following the founding of his consultancy firm. In April 2009, Yang Tengbo was cordially received by President Hu Jintao in London and the following year he was awarded the title of "Top Ten Leaders of the 11th China Era Who Influence China" in Beijing. He later initiated the establishment of the China-UK Entrepreneurs Association which facilitated the landing of "Pitch@Palace", a venture capital platform initiated by Prince Andrew, Duke of York, to China to support young entrepreneurs. It was perhaps this enterprise that established his close links with Prince Andrew and which later raised eyebrows with the British security service [zgcforum - Chinese / Guardian].
Gaining advantage
China's foreign policy should come as no surprise to anyone who understands the country. Ever since China 'opened up' in the 1980s, it has sought to gain advantage wherever it can.
For example China might conveniently ignore some WTO and other international trade rules while taking advantage of others. Many people might for example be unaware that China is able to take advantage of cheap postal rates when shipping items all over the world. These lower postal rates are set by the Universal Postal Union (UPU) treaty for so-called 'developing countries'.
In practice a consumer in the US or Europe can order an item from China including shipping for less than what a local seller or distributor might be able to offer the same product. While China is still developing in many ways, the fact that it is the second largest economy seems to be somewhat incongruous with its being judged to have access to more favourable shipping rates.
China has feathered its nest in other ways too. By 'investing' in Africa and other places, building roads and other infrastructure, China has secured cheap copper, oil and other important natural resources.
China has long 'welcomed' businesses to invest and create manufacturing bases in China. However, this has come with a hidden cost as many firms find their intellectual property copied or blatantly stolen.
The world has been coaxed by China's cheap manufacturing base to knock out everything from clothes to hi-tech items. But the factories where these items are produced often have a secret output of items which end up on the 'black-market'.
Stolen IP
Those shanzhai or counterfeit items one might buy at 10% of the cost of the real item at a Beijing store, may in fact be the real item. In other cases, the items are an exact copy since the blueprint is simply passed around between enterprises. Most shanzhai products tend to be aimed at the domestic or tourist market and as such may little dent the profits of some firms. Most Chinese people will be unable to afford a real North Face jacket, Chanel bag or Burberry scarf but will be happy to wear the fake. The tourists are happy too, as they go home with a fake 'Rimowa' suitcase, that normally costs in the region of $1,000, having paid less than $50.
Authorities turn a blind eye to such things for several reasons. The first is 'Bread and Circuses'. Keep the people happy. If people are happy in their lives with their designer clothes, watches, suitcases and phones, they are less likely to create problems. Keep the tourists happy. While the draw to China is more than the lure of cheap designer products at Beijing's infamous Silk Market, there won't be many tourists leaving Beijing without at least a couple of 'knock-off' items.
China, has of course used IP theft to bolster its international position too. It is clear that while many people in the West might buy a branded product, there is a shift towards Chinese brands or cheaper Chinese made products that are essentially copies of well known brands.
Data theft and retention
It will be of no surprise that people's data is worth much to companies. Be it your browsing history on your favourite shopping website to purchasing habits at your local supermarket, collected via a loyalty card, such data is a goldmine.
So it is of growing concern that hacking and cyberattacks are becoming more frequent. And many such attacks are emanating from China. In recent weeks AT&T and other telecoms giants in the US have been targeted prompting the FBI to advise consumers not to send text messages [NPR].
Traditional espionage
Information is everything and can give advantage in business deals and securing contracts. Thus, traditional spying also maintains a place in a world of hi-tech espionage.
It is in this world that the likes of Yang Tengbo play a role. His name was revealed following a High Court ruling on the 16th December. His ban from entering the UK is due to his being deemed a national security risk. He is accused of being engaged in "covert and deceptive activity" on behalf of the Chinese state [Politico].
In part this may be true, in as much as any information, private or otherwise, he gleaned from his contacts would have likely been shared with the Chinese state.
Allegiance to the state
Any member of the CCP [the Chinese Communist Party or Zhongguo Gongchandang 中国共产党] is expected to pay allegiance to the state. Moreover, nearly every professional in China is likely to be a member of the CCP.
While membership is usually by invitation only, without being a member of the CCP an individual is less likely to excel in business or gain a promotion within a company.
Thus the assertion that Yang had 'close links to the Chinese government' is in fact true of probably every top Chinese business person, ambassador or official.
Banned
Any member of the CCP [the Chinese Communist Party or Zhongguo Gongchandang 中国共产党] is expected to pay allegiance to the state. Moreover, nearly every professional in China is likely to be a member of the CCP.
While membership is usually by invitation only, without being a member of the CCP an individual is less likely to excel in business or gain a promotion within a company.
Thus the assertion that Yang had 'close links to the Chinese government' is in fact true of probably every top Chinese business person, ambassador or official.
Banned
Yang is reported to have been stopped and questioned by police in November 2021 at the UK border under powers to investigate suspicions of "hostile activity" by a foreign state. This followed shortly after a meeting in London with the Chinese Ambassador to the UK Zheng Zeguang, in his role as Executive Chairman of the Chinese Chamber of Commerce in the UK [UKCBA - Chinese].
During that stop he surrendered a number of electronic devices including a mobile phone. From what was found on the devices it prompted a decision by the then Home Secretary Suella Braverman to use exceptional powers to ban him from the UK.
Information obtained from the devices, including a letter addressed to Yang from Prince Andrew's adviser Dominic Hampshire, appeared to suggest that Yang had placed himself in a position "to generate relationships between senior Chinese officials and prominent UK figures which could be leveraged for political interference purposes by the Chinese State" [BBC].
This is all likely to be true. Though there is an element of naivety on the part of the press and amongst politicians that Yang is an exception. However there are some lone voices calling out the Chinese. Iain Duncan Smith, a former Conservative party leader and strong critic of the Chinese government, has said the allegations surrounding Yang were "the tip of the iceberg" of Chinese influence in the UK [Guardian].
Chris Yang, has described the claims as "ill-founded" while China has repeated it oft repeated line of not meddling in China's internal affairs.
"The UK side must have a right perception of China, see the historical trend clearly, and handle its relations with China on the basis of mutual respect, non-interference in each other's internal affairs, equality and mutual benefit," a spokesperson from the Chinese Embassy in London said in a statement.
Difficult playing fields
At the heart of it all, China is not only seeking strength in terms of its economic position on the world stage, it is also establishing a position of self-sufficiency should it decide, in the future, to close its doors and end its open door policy. Should that happen, despite all the criticisms of China, the world beyond its borders would find itself in a world of hurt. The global economy would find itself without the necessary rare earths needed for technology, much of the world's manufactured goods and even food, given China supplies a quarter of the world's grain and feeds one-fifth of the world's population. Moreover, China ranks first globally in producing cereals - such as corn, wheat, and rice - fruit, vegetables, meat, poultry, eggs, and fishery products [CFR].
It's all very well to criticise China. Many criticisms are of course well founded. But the West has made decisions over the last few decades that has resulted in the erosion of domestic manufacturing and agriculture in favour of a quick economically viable solution by farming industry out to China. Some resources, such as rare earths, do exist outside of China. But the mining operations have, in many cases, been mothballed, partly due to environmental and other considerations. Thus, should China shut its doors, it would take decades for the world to recover its industry, agriculture and restart mining of natural resources.
The West must plan for such eventualities. China plans for years, decades and even centuries ahead. Most western democracies focus only on the short term, planning only from one election cycle to another. Such short-termism will be their undoing if they don't wake up and smell the coffee. At least one doesn't have to rely on China for the morning brew with the likes of Brazil, Vietnam, Indonesia and Columbia providing the bulk of the world's coffee beans [Wikipedia]. However, an increasing amount is now being shipped to China as their appetite for coffee grows. Exports of Brazilian coffee to China surged 186.1% in 2024 compared to 2022-2023. So even that's not a safe bet [Xinhua].
tvnewswatch, London, UK
